Ripple Labs has experienced a significant 26% surge in the price of XRP following a federal judge’s recent ruling in its ongoing legal battle with the SEC. The court has mandated Ripple to pay a $125 million civil penalty and has imposed a permanent injunction preventing the company from future violations of U.S. securities laws.
This decision, which appears to bring the three-year case closer to resolution, has been celebrated by Ripple executives as a major victory for both the company and the broader cryptocurrency industry. The ruling, announced on August 7, has seen XRP’s price jump to $0.63, recovering from recent declines. Ripple Labs CEO Brad Garling house and co-founder Chris Larsen have publicly hailed the decision as a win, expressing hope that it marks the end of the SEC’s aggressive stance against the crypto sector.
The decision also led to a significant shake-up in the futures market, with a large volume of short positions being liquidated as XRP’s price soared. The legal battle, which began in December 2020, had seen Ripple arguing against the SEC’s claims of unregistered securities sales involving XRP. While the SEC had sought a much larger fine, Ripple’s successful negotiation for a lower penalty has been met with enthusiasm from the crypto community, despite ongoing speculation about whether the SEC might appeal the ruling.
